In April 2021, the NGFS established a joint NGFS-INSPIRE Study Group on Biodiversity and Financial Stability to develop a research-based assessment of the implications of biodiversity loss for central banks and supervisory authorities in delivering against their mandates.

NGFS Members carefully examined the three NGFS Occasional Papers1 produced by the joint study group, namely:

• A Vision Paper published in June 2021, which sets out the links between biodiversity loss and the macroeconomic and financial systems;
• An Interim Report published in October 2021, which delves deeper into the challenges related to the assessment of such links and provides potential ways forward for central banks and financial supervisors to incorporate these insights in the exercise of their missions;
• A Final Report published in March 2022, which analyses different approaches to the design of nature-related scenarios, considers gaps in knowledge, sets out a research agenda, identifies near-term policy options, and makes recommendations for action by central bankers and financial supervisors to address financial risks associated with biodiversity loss and to support investments that are positive for the preservation of nature.

Source: The Network for Greening the Financial System (NGFS)